AER Board member Jim Cox said distributors were now responding to the “strong incentives” the AER had put in place.

“We know the primary driver of these productivity gains have come from networks reducing their costs to maintain and operate their networks while at the same time improving reliability,” he said.

How electricity distribution networks productivity is measured

The productivity of a business improves when it delivers more outputs (product) relative to its inputs, such as its costs.

The AER says electricity distribution networks costs account for 30 to 40 per cent of customer bills. This includes the cost of high voltage transmission lines, transformers, electricity poles and wires. When these costs are lower, electricity bills go down; higher, and they go up.

The AER Report shows that since 2015, electricity network costs have been falling across the board

The AER puts incentives in place for electricity distribution networks to improve the efficiency of their spending and in turn improve productivity.

Reducing prices through a home solar installation

While there is some good news in the report in terms of cost reductions and downward pressure on consumer bills, electricity prices remain high.

With a rooftop solar installation, however, you can generate your own electricity and become less subject to market price fluctuations. In addition, any excess unused solar power can be sold to the grid, reducing your costs still further.

And with a solar battery added to the mix, you can also store unused power for use at a later time.